avax analysis

Avalanche’s native token AVAX has captured the crypto community’s attention, gaining 35% in the past week. This surge aligns with broader market trends and significant ecosystem developments, making AVAX one of the standout performers.

AVAX Breaks Key Resistance Levels

AVAX recently surged past the crucial $30 resistance level, marking a strong shift in market sentiment. The price is currently around $31.49, slightly down by 1% at the time of writing, but still showing a positive outlook. Market analysts believe the rally isn’t over yet, predicting more gains ahead.

The asset has also surpassed the 200-day Exponential Moving Average (EMA), signaling a potential transition from a bearish to a bullish trend. If AVAX closes above the daily $32 candle, analysts expect a further 35% rally, targeting $42.5 as the next major resistance point.

Market Indicators Show Strong Bullish Sentiment

On-chain data supports the bullish outlook for AVAX. According to Coinglass, the Long/Short ratio for Avalanche currently stands at 1.40, indicating strong confidence among traders. Additionally, the open interest for AVAX has risen by 13.6% in the past 24 hours, showing increased trader participation following the recent breakout.

At present, 58.3% of top AVAX/USDT traders hold long positions, while 41.7% are short. This suggests that bulls and whales are dominating, potentially setting the stage for a significant upside rally in the coming days.

Could AVAX Overtake Solana?

Some market analysts believe that Avalanche has the potential to outperform Solana (SOL) in the long run. If AVAX crosses the $150 price level, it could position itself as a stronger competitor, according to a report by CNF.

Jason Yanowitz Predicts a Major Rally

Jason Yanowitz, co-founder of Blockworks, sees parallels with AVAX’s 70X rally from 2021. He suggests that the current market conditions resemble that phase, particularly following Donald Trump’s recent victory in the U.S. presidential election. Yanowitz noted that private market allocators are realizing their underexposure to crypto, prompting increased interest in AVAX.

He also highlighted that many firms are now approaching VCs and hedge funds for crypto allocations. Yanowitz anticipates the announcement of significant new funds entering the market soon, which could provide additional bullish momentum for Avalanche.

Avalanche Foundation’s Buyback Boosts Price

A recent buyback by the Avalanche Foundation is also driving positive sentiment. The foundation repurchased 1.97 million AVAX tokens, creating upward price pressure. This move is expected to support the ongoing rally, providing a strong foundation for future gains.

Final Thoughts

Avalanche (AVAX) appears to be entering a strong bullish phase. With key resistance levels broken and strong market participation, the token could see further upside. However, investors should be aware of potential market volatility, especially with key macroeconomic data releases, such as the U.S. CPI and jobless claims, expected this week.

Avalanche (AVAX) has been gaining attention after a period of price drops. As the correction nears its end, investors are eyeing a potential rally toward the $35 mark. In this article, we’ll explore AVAX’s recent price movement, the factors driving its growth, and what might come next.

Recent Avalanche (AVAX) Price Movement

AVAX is currently priced at $25.90, with a 24-hour trading volume of $611.20 million and a market cap of $10.52 billion. Over the past 24 hours, AVAX has risen by 3.7%, showing signs of recovery. However, AVAX remains 82% below its all-time high of $146.18, reached in November 2021.

Despite this, market sentiment around AVAX remains neutral, with the Fear & Greed Index reflecting a score of 49. With 406.05 million AVAX tokens in circulation, the yearly supply inflation rate stands at 14.63%, adding 51.81 million new tokens in the last year.

Why is Avalanche (AVAX) Price Up?

The recent uptick in AVAX’s price can be attributed to support at the 50-day Simple Moving Average (SMA) of $24.66, sparking bullish momentum. If AVAX breaks through the 20-day Exponential Moving Average (EMA) at $26.42, it could push the price higher, possibly to the $35 mark.

Additionally, large investors or “whales” have shown growing interest in AVAX, with whale transactions surging 98% in a 24-hour period, totaling $226.19 million. This suggests increasing confidence in AVAX’s potential, though retail investors remain more cautious, waiting for stronger signals before making moves.

Can AVAX Reach $35?

Technically, if AVAX holds its support and breaks above the key resistance levels, the price could aim for $35. Whale activity, along with strong market liquidity and growing trading volumes, supports a bullish outlook. However, failure to maintain support above the 50-day SMA could lead to a bearish shift, potentially dropping the price to $19.50.

On the positive side, if AVAX surpasses $31, a wave of liquidations worth $23 million could further boost the price. For AVAX to achieve and maintain higher levels, sustained momentum and support from both whale and retail investors are crucial.

What’s Next for Avalanche (AVAX)?

AVAX has demonstrated strong growth over the past year, with a 151% increase, outperforming most top crypto assets. As it trades above its 200-day SMA, the potential for further gains looks promising. However, AVAX remains overbought, signaling a possible short-term pullback before any significant rally toward $35 or beyond.

Investors should keep an eye on key resistance levels, whale activity, and market sentiment. If these factors align, AVAX could reach $50 or higher in the medium to long term.